Trump Threatens to Isolate Iran! Beijing Warns Economic War Won't Solve Crisis

China's Foreign Ministry said on Thursday (20th) that U.S. President Donald Trump's threat to launch an 'economic war' against Iran and its trade partners would not help resolve the Iranian crisis, calling on all relevant parties to exercise restraint and resolve the issue through diplomatic and political means.

At a regular press briefing in Beijing, Foreign Ministry spokesperson Lin Jian stated that sanctions and pressure are ineffective in solving problems. China urges all relevant parties to take responsible measures and seek a diplomatic and political resolution to the crisis.

Lin's remarks came in response to Trump's recent social media post outlining a plan to further isolate Iran and its trade partners. While Trump did not name specific countries that might face sanctions, China—importing over 90% of Iran's oil exports—is seen as a potential primary target.

China is Iran's second-largest trading partner in 2025, behind only the United Arab Emirates. The UAE this week accused Iran of launching ballistic missiles into its territory and subsequently announced it would sever all economic ties with Tehran. Beyond economic impacts, Trump's threats could further escalate U.S.-China tensions ahead of his expected meeting with Chinese President Xi Jinping next month.

China does not recognize unilateral sanctions, but state-owned enterprises typically avoid blacklisted oil. In the past, major Chinese state-owned banks have complied with U.S. sanctions on Iran, North Korea, and Hong Kong officials to avoid losing access to the U.S. dollar clearing system.

Since late February, Washington has imposed sanctions on some Chinese private refineries and companies over Iran, but has not yet targeted major Chinese banks involved in financing. In May, China instructed domestic firms not to comply with U.S. sanctions on five refineries, placing large banks in a dilemma between following Beijing's orders and maintaining access to the U.S. financial system.

Experts suggest that if the U.S. merely reinstates past sanction models, Chinese refineries—already adept at circumvention—may not be significantly affected. Beijing is expected to respond quietly to new sanctions, possibly enacting limited countermeasures but more likely seeking alternative trade channels rather than abandoning business with Iran altogether.